How Energy Storage Systems Can Accelerate the Global Transition to Clean, Reliable Power

An energy storage system (ESS)—including batteries and other types—stores electricity when it is abundant and delivers it when demand is highest. Like a bank account, it allows energy generated at one time to be “saved” and used later when it is needed most. 

As countries accelerate the transition from fossil fuels to renewable energy, ESS will play a critical role in ensuring that electricity remains reliable, affordable, and resilient. The following snapshots highlight the current state of energy storage in key markets, recent progress, and the additional deployment needed to unlock its full potential.

Recognizing its benefits to keeping the lights on, lowering energy costs, and enabling more renewable power, NRDC is working to accelerate ESS in countries and regions around the world. Specifically, energy storage systems can help: 

Integrate more renewable energy 

Energy storage systems can store renewable electricity during periods of high generation and low demand then dispatch it during times of low generation and high demand. This prevents energy waste and means renewables can be used to meet demand spikes instead of carbon-intensive, more expensive gas plants. 

Build climate resilience 

Energy storage systems can provide backup power during droughts that reduce hydropower generation. They can help restart electricity networks following storms and other extreme weather events, and they can support critical infrastructure—such as hospitals, water systems, and emergency services—during periods of peak demand. 

Increase energy independence and affordability  

Energy storage can be paired with rooftop solar in homes and help households reduce their reliance on larger power grids that can experience price shocks or regional failures while displacing polluting diesel generators and fossil fuel power plants. Consumers can also store the rooftop solar energy they generate and use it when electricity prices are highest.  

Expand rural energy access 

When extending transmission lines to rural communities is prohibitively expensive, small-scale renewable power grids (known as microgrids) can provide power more cheaply and efficiently. Pairing microgrids with ESS allows them to provide reliable electricity around the clock, including during periods of low solar generation.

Support commerce and industry 

Energy storage paired with renewable energy can help industrial facilities reduce dependence on an unreliable grid while improving energy security. In regions with frequent power outages or voltage fluctuations, storage systems can protect sensitive machinery, cold storage facilities, agricultural operations, and manufacturing processes. In markets with high electricity prices, renewable energy and storage can also lower operating costs and improve competitiveness.